Finding 1225978 (2025-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-08-05
Audit: 408618
Organization: Chicago Survivors, Inc. (IL)
Auditor: SASSETTI LLC

AI Summary

  • Core Issue: One out of 40 sampled expenses lacked proper approval documentation, indicating a significant deficiency in internal controls.
  • Impacted Requirements: Compliance with 2 CFR 200.303, which mandates effective internal controls over federal awards.
  • Recommended Follow-Up: Management should reinforce approval processes, provide training, implement monitoring, and consider system-based controls to ensure compliance.

Finding Text

2025-002: Approval of Expenditures not maintained - Significant Deficiency Type of Finding: Significant Deficiency in Internal Control over Compliance and Compliance – Allowable Costs (General Disbursements) Federal Agency: Chicago Department of Public Health Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number: 1217907 Award Period: January 1, 2023 to December 31, 2025 Criteria: Under 2 CFR 200.303, the Organization is required to establish, document and maintain effective internal controls over federal awards. Condition and Context: A sample of expenses was selected to test internal control over compliance and compliance with allowable costs/cost principles. Out of the items selected for testing, we noted insufficient documentation of approval on 1 out of 40 expenses selected for testing. Cause: The Organization has fiscal policies and procedures to require written approval, however they were not followed in the instance identified. Effect: The failure to document approvals for expenses could lead to unallowable costs being disbursed on grant awards. Questioned Costs: None identified. Repeat Finding: No. Recommendation: We recommend that management reinforce adherence to the Organization's existing expenditure review and approval and documentation requirements; provide training, as needed; implement monitoring activities or periodic review to evaluate compliance; and consider implementing additional preventive controls (for example, system-based approval requirements) to help prevent payments from being processed without appropriate authorization and supporting documentation. Views of Responsible Officials and Planned Corrective Action: See corrective action plan.

Corrective Action Plan

Finding Number: 2025-001 & 2025-002 Name of Responsible Party: JaShawn Hill, Executive Director Corrective Action: Management acknowledges and agrees with the finding. The issue resulted in a variety of issues: 1) invoices for recurring transactions set up on automatic payment were not downloaded and approved by the appropriate party, resulting in a lack of adequate documentation, 2) a former employee was granted access to make ACH payments directly from the organization’s bank account, allowing payments to be made without proper oversight or approval, and 3) access to the organization’s Amazon account was limited to one employee, allowing inappropriate purchases to be made without proper oversight or approval. To ensure that proper processes and documentation is followed going forward, management will: 1) provide adequate training to the individual tasked with collecting invoices and approval for all transactions, including recurring transactions, and will perform a periodic review of various transactions to ensure approvals and documentation is obtained; 2) no longer allow any employee to make ACH payments directly from the organization’s bank account, and instead will implement a bill payment software that ensures that all ACH payments must be approved by an appropriate party, other than the individual initiating payment, before payment can be made; and 3) ensure that multiple parties have access to the organization’s Amazon account, and that the transactions and receipts are reviewed and approved as dictated by the organization’s existing policies and procedures (and are subject to the periodic review noted in item 1 above). Anticipated Completion Date: July 31, 2026

Categories

Allowable Costs / Cost Principles Questioned Costs

Other Findings in this Audit

  • 1225979 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
98.958 Block Grants for Community Mental Health Services $712,010
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $657,088